Philip Morris International Inc.
PM,
has set a target of at least $1 billion in net revenue for its “beyond nicotine” products by 2025. That would make the Marlboro parent’s smoke-free and “beyond nicotine” products the majority of its total net revenue. The goal was announced ahead of the company’s investor event on Wednesday. Philip Morris also said it would launch the IQOS ILUMA, the next version of its “heated tobacco system” in the second half of this year. The IQOS VEEV e-vapor product will launch in more than 20 markets this year. The company aims to commercialize IQOS products in 100 markets by 2025, up from 64 at the end of 2020. As for cigarette sales, Philip Morris thinks that, in the right conditions, they can end in most countries in 10-to-15 years. “We are now embarking on our next growth phase, further shifting to a better, more sustainable business by driving the development of the smoke-free category and leveraging our leading commercial model, which places the consumer at the core, to switch more adult smokers to our smoke-free products,” said André Calantzopoulos, chief executive officer, in a statement. Philip Morris reaffirmed its full-year 2021 guidance for earnings per share in the range of $5.90 to $6.00. For the three-year period between 2021 and 2023, Philip Morris is guiding for net revenue and adjusted EPS compound annual growth of 5% to 9%. Cigarette volume is expected to decline in that period. Philip Morris stock has fallen 3.5% over the last year while the benchmark S&P 500 index
SPX,
is up 16.7% for the period.
